Housing bubble 2 in Metro Detroit or even worse coming in the future? (Dearborn: sale, real estate)

[Retroit]

You can't please everybody. Sellers want high prices, buyers want low. All things considered, Southeast Michigan has very reasonable home prices compared to the rest of the country.

It's nice of you to be concerned about your brother though.

I suspect that as home prices increase, home builders will start oversupplying the market and housing prices will stabilize or decline.

Then you have the question of government intrusion into the free market. Who knows if they will eliminate the mortgage interest tax deduction or create another housing stimulus program???

...or if the house "flippers" get carried away again???

[us66]

The flippers and the otherwise greedy are back.

I remember this little house being listed last year at $55K.

21021 E 13 Mile Rd, Saint Clair Shores, MI 48082 - New Home for Sale - realtor.com®

Currently listed at $110K, good area but not a great area, two doors down from an abandoned K Mart (with homeless in the area).

11811 Aleta Cir, Warren, MI 48093 - New Home for Sale - realtor.com®

Currently listed at $145K, sat for months at $99K.

[Zippyman]

Originally Posted by us66

The flippers and the otherwise greedy are back.

I remember this little house being listed last year at $55K.

21021 E 13 Mile Rd, Saint Clair Shores, MI 48082 - New Home for Sale - realtor.com®

Currently listed at $110K, good area but not a great area, two doors down from an abandoned K Mart (with homeless in the area).
.

Not sure how $110k is a "greedy" price for a house like that? Not even knowing the neighborhood, I can see it pulling around $1k in rent, and costing far less than that as a purchase. Shoulda, woulda, coulda as to buying it for $50k.. looks like an opportunity was missed .

[animatedmartian]

That neighborhood is actually pretty decent albeit quiet and boring. I've spent a lot of time in that area and I think $100K is an appropriate price depending on the quality of the specific house. Quite a few houses still have furnishings from the 70s but no big deal for a flipper. The population here isn't terribly transient and it's very easy to tell (at least in my experience) which ones are the bad apples and which ones are the real deals.

I get the feeling that people here (and probably from mostly outside of the metro) have a really high standard for neighborhoods, and personally having lived in quite a few Detroit neighborhoods before, people seem to have a very modest view of what a living in a bad neighborhood actually feels like. But, it is what it is.

[mangofacee]

It's my understanding that a lot of the country is seeing a mini-bubble, due to the "record breaking" low interest rates. When interest rates are as low as they have been this past year, people can afford to pay a bit more for a house since the monthly mortgage payment will be less. Sellers take advantage (rightfully so) and can charge top dollar for their home.

I know for myself, I look at what my monthly mortgage payment will be, instead of the total price of the home. I think a lot of people do the same. A couple years ago, I could only afforded a mortgage on a $150K house. Now, with lower rates, I can afford to buy closer to $200K. Once rates increase, the prices will drop.

Also, summer is the buying season, so prices go up. I've been advised that if you want the best "deal" buy in the off season, which is wintertime.

The foreclosure giveaways have indeed dried up, however, the metro Detroit area is still pretty affordable, and IMO, the cost of living will not get as crazy high as other major cities (Seattle, Chicago, NYC, etc), unless Detroit City has a major revitalization (which I sure hope it does).

[Arthur Digby Sellers]

Originally Posted by MarvinStrong313

Completely undesirable? Not true. And there are plenty of street lights in Detroit. The entire city isn't living in complete darkness.

It is if you want to send your kids to a school district where they won't get shot.

[MS313]

Originally Posted by Arthur Digby Sellers

It is if you want to send your kids to a school district where they won't get shot.

OK cut it out. Although DPS is not a good school district, there are some good DPS schools. And I went to DPS, never been shot. NONE of the people I personally know have been shot at a DPS school. The closest I came to someone getting shot in a DPS school was a boy a Henry Ford High a few years ago who this girl I used to know just happened to know him because they went to the same school and was in a class or 2 together I believe. I doubt I've ever seen him before in my life however.

[Arthur Digby Sellers]

There are no good DPS schools. It is the worst school system in the entire country.

[belleislerunner]

You'll be proud to learn that Renaissance High School in Detroit (a DPS school) is ranked, via US News and World Report, as the 26th best public high school in the entire state of Michigan. Better than any school in Novi =)

Search Michigan High Schools | US News

[PCH_CDM]

Rennaisance High is nowhere near Novi High School in test scores.

Rennaisance and Cass Tech are about equivalent to average suburban high schools.